We are a materialistic society. For many people, "fun" revolves around spending money in one way or another. We're looking for immediate gratification, and we're willing to tap any available source--credit cards, home equity lines of credit, retirement plans, and so forth--to get it.Unfortunately, this type of behavior can get us in trouble. Bills we can't pay. Credit-card debt that may take years to pay off. You don't have to be a financial genius to see that there has to be a better, smarter way.
Our school systems should teach kids about setting financial goals and calculating how much to save to reach those goals. This is a basic life skill, and everybody should know how to do it.
Sorting Your Goals by Time HorizonAlmost everybody has financial goals. They can be longer-term goals like sending your kids to college or having enough money to eventually retire. Or they can be shorter-term, such as buying a new car or taking a trip to Costa Rica. Whatever you're dreaming about, it probably comes with a price tag. Start by writing down everything you want that costs money.
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